Transcript of "Identifying Business Opportunity"

1.
Prepared by:
Tan, Denise Margarette P.
Edu35-301E

2.
Opportunities
can exist on paper or in the form of ideas.
usually related to the entrepreneur’s work
experiences, hobbies, or social environment.
can be found in many ways and in many
places.
Many people see opportunities but only
entrepreneur acts upon them.

3.
Business idea is a business concept that
results in profits if it is turned into a tangible
product or service.
Opportunity also defined as the potential to
create something new that involves change in
knowledge, technology, economy, politics, social, a
nd demographic conditions.

5.
Observation ~ data is gathered by observing and
recording the respondent’s actions in
Experiments - experiments or product sampling is
another option.
activity.
Interviews - field research covers interviews with
customers, suppliers, competitors, and industry experts.
Surveys - refers to the development of a short
questionnaire with respect to the targeted product.
- the questions should be very specific.

6.
Secondary sources
involved gathering data that have already
been compiled and are available.
it is initially conducted for one purpose using
existing data which is :-
~ reliable
~ available references
~ mass media and electronic media

7.
Reliable existing data
- information obtained from annual report of companies.
Reference
- an entrepreneur can use reference such as publish information
from then library, internet and so on.
Mass media and electronic media
- advertisement and information in the newspaper, magazines and
internet.
Information on raw materials can be a business opportunity for an
entrepreneur.

8.
PROCESSING OF REGONIZING, ANALYSING
AND CHOOSING A BUSINESS
OPPORTUNITY
To determine if the venture can make profits
and sustains its competitiveness.
Each opportunity must be carefully screened
and evaluated.
Evaluation is the most critical element in the
entrepreneurship process.

10.
Recognizing Customer Needs And
Wants
An entrepreneur has to be sensitive in
identifying the needs and wants of customers.
A need is something basic in life.
Wants are something that is more than a
basic need.

11.
Choosing a business opportunity
Criteria that must be choose by entrepreneur in
business opportunity is :-
Legality
Competitors
Capital requirement
Risk
Legality
The sugestion of business ideas must be prove by the
law.

12.
Competitors
Those who are in the same business
Have a potential to serve the entrepreneur ‘s
customers.
Entrepreneur can identify competitors by asking
customers from his existing business.
Competitors are identify ~ the entrepreneur should
identify the strengths and weaknesses of his
competitors in term of organizational terms.

13.
Capital requirement
the amount invested in the company.
Three types of capital :
a) Fixed or permanent capital
Fixed capital is the amount of the capital that been
used to buy the asset of in the company.
b) Working capital
Referred to as operating capital
Also known as assets of business that can be used to
supports business operations.
Often used to pay bills and salaries, to buy
inventories and others.

14.
c) Plantation or growth capital
Not related to current business situation.
Used to help small business change its primary
direction.
Risk
Define as a period of uncertainly experienced by a
business as a result of unforeseen events which
lead to either poor earnings and resultant failure.
Entrepreneur should be aware of the risks.

15.
Risks face by entrepreneur based on the following
aspect :
The level of difficulties in entering the business
field
The size or amount of capital to be invested
The amount of profit that can be gained from
the revenue
The ability and competency of existing
workforce or human resources in managing the
business
Management of energy resources
The product’s potential to penetrate the market

16.
In creating or searching for business opportunities,
one must consider the following factors:
1. The needs of the community – What products
are in demand?
2. Available resources – Do you have money for
capital? Do you have equipment and facilities?
3. Skills and interests – Does the particular
business activity meet your interest?
4. Market - where will you sell your products? Who will
buy your products?